I had earlier written how e-com is pushing commerce out of business. Over the past few years of e-com in India has seen how valuations if companies go to astronomical levels with public being driven towards the thought process that e-com is best model for consumers and country. Gaints like Amazon entered the country, competition ensured with ever lower prices, followed by protest by few against the predatory pricing (undercutting) by e-com players.

Of late the bubble seems to have burst, suddenly investors are having realisation that profit is essential to run a business not just turnover! Many Indian e-com websites are either shutting down or seeing their funding plug being pulled out.

Why this sudden turn around when e-com has actually established itself in the country? What’s happening in the background? After pouring in so much money why are ‘investors’ pulling out/putting breaks on even from leading players?